Intercultural Competence:

Gaining New Perspectives

 Intercultural Competence:
Gaining New Perspectives

1
Understanding Culture’s Impact on International Trade
Describes what culture is, the various degrees of understanding culture and how it affects communication
with international partnerships

2
Developing Intercultural Relationships
Describes the importance and process of building and maintaining relationships with international partners
and how to navigate the cultural divide

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 Module Learning Outcomes
Upon successful completion of this module, the individual will be able to:

1 Describe how international trade practitioners can achieve intercultural competence.

2 Explain how intercultural competence can benefit international trade initiatives.

Build and sustain mutually beneficial business relationships with global suppliers,
3 clients and associates.

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 Reflect on Your Experience
Reflect on your past experience and answer the following questions to the best of your ability.
Do you agree or disagree with the following statements?
 Business is business in any country.
1  People are basically the same around the world.
 Cultural differences can be overcome with good intentions.
Which resources can international trade practitioners use to gather intercultural
2 information about a target market?
The degree to which a cultural group tends to avoid uncertainty is an example of a
3 cultural orientation. What is the one other type of cultural orientation used to
describe how cultures commonly differ?
Name three social norms or business protocols that should be researched before
4 interacting with business associates in a new foreign market.
Name three behaviours that help develop and sustain relationships with business
5 associates from other cultures.

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 Intercultural Competence:
Gaining New Perspectives

UNIT 1
Understanding Culture’s
Impact on International Trade
◎ What is Culture?
◎ Cultural Orientations
◎ Societal Systems
◎ Cultural Resources
◎ Research Target Cultures
◎ Share Findings and Best Practices

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 Why Is This Important?

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 What is Culture?

Culture is a system of shared attitudes, beliefs, values, aesthetics,

language, traditions and social systems of a group (e.g. a country,
an organization).

Intercultural Competence
See Figure 1.1 – The Cultural Iceberg
Ethnocentrism
Cultural Relativism

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 The Cultural Iceberg

Source: Adapted from Language and Culture Worldwide, ‘The Cultural Iceberg’
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 Cultural Orientations
Cultural Distance

Individualism vs Collectivism

Power Distance

Masculinity vs Femininity

Uncertainty Avoidance

Long-Term Orientation vs Short-Term Orientation

Indulgence vs Restraint

See Figures 1.2 – 1.8

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 Hofstede’s Model of National Culture

FIGURE 1.2
Source: Adapted from Hofstede, G et al, ‘Cultures and Organizations, Software of the Mind’

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 Individualism vs Collectivism

China

United Kingdom

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 Power Distance

Russia

Denmark

FIGURE 1.4
Source: Hofstede, G et al, ‘Cultures and Organizations, Software and the Mind’
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 Masculinity vs Femininity

Canada

Japan

FIGURE 1.5
Source: Hofstede, G et al, ‘Cultures and Organizations, Software and the Mind’
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 Uncertainty Avoidance

India

Brazil

FIGURE 1.6
Source: Hofstede, G et al, ‘Cultures and Organizations, Software and the Mind’
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 Long-Term vs Short-Term Orientation

Germany

Saudi Arabia

FIGURE 1.7
Source: Hofstede, G et al, ‘Cultures and Organizations, Software and the Mind’
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 Indulgence vs Restraint

Australia

South Korea

FIGURE 1.8
Source: Hofstede, G et al, ‘Cultures and Organizations, Software and the Mind’
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 Cultural Orientations, Continued

Meyer’s Model
o Communicating: Low-Context vs High-Context

o Evaluating: Directing Negative Feedback vs Indirect Negative Feedback

o Persuading: Principles-First vs Applications-First

o Leading: Egalitarian vs Hierarchical

o Deciding: Consensual vs Top-Down

o Trusting: Task-Based vs Relationship-Based

o Disagreeing: Confrontational vs Non-Confrontational

o Scheduling: Linear Time vs Flexible Time

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 Societal Systems
Economic System
o Free market / State Controlled

Religious System

Education System
o Universality

o Quality

o Content

o Values

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 Cultural Resources

Primary research is often an effective but expensive way to learn

about a target culture, travelling reveals much about a society.
o Trade offices or consulates

o Trade commissioners

o Cultural attachés

o Online resources

o Peers familiar with target culture

o Agents and representatives

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 Research Target Cultures

Social Norms and Business Recommended questions:

Protocols 1. What are the social norms and
business protocols?
See Table 1.1 – Social Norms and Business
2. What are the definite dos and don’ts?
Protocols
3. What are the key differences /
Events and Trends similarities between this culture and
our own?
History 4. What stereotypes does this culture
have of our culture?
5. What stereotypes do we have about
their culture?
6. What events and trends are currently
impacting the target culture?
7. What is our shared history?

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 Social Norms and Business Protocols
Social Norms Business Protocols
Dress and appearance Language used
Greetings and goodbyes Exchange of business cards
Gender roles Greetings and goodbyes
Food and drink consumption habits Introductions
Nonverbal communication Appropriate time for and amount of socializing
Holidays Dress and appearance
Humour Gender roles
Acceptance of technology Gift giving
Freedom of speech and liberties Meeting protocols
Religious practices Ethical standards and degree of corruption

TABLE 1.1

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 Share Findings and Best Practices

International trade practitioners benefit from each other’s

intercultural success stories and mistakes.
o Lessons from colleagues

o Noting observations, interpretations, questions, insights

o FITT’s TradeReady blog – TradeReady.ca

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 Intercultural Competence:
Gaining New Perspectives

UNIT 2
Developing Intercultural
Relationships
◎ How to Build and Sustain Intercultural Relationships
◎ Misunderstandings
◎ Using a System
◎ Communication and Intercultural Relationships

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 Why Is This Important?

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 How to Build and Sustain
Intercultural Relationships

Developing relationships is a process that needs an ongoing

commitment of time and effort.
 Finding Similarities

 Building Trust

 Ongoing Communication

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 Misunderstandings

Misunderstandings are likely to occur in intercultural relationships

because of differences in language, values, beliefs, perceptions,
expectations and behaviours.
The most common forms of misunderstandings are time, high-
versus low-context communication, and loss of harmony and face.
When a misunderstanding occurs, trade associates should attempt
to recover by explaining intended outcome.

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 Using a System

David Livermore created a system for developing cultural

intelligence to help people prepare for and adapt to the situation
as it unfolds.
See Figure 2.1 – A System for Managing Intercultural Interactions

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 A System for Managing Intercultural Interactions

FIGURE 2.1

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 Communication and Intercultural Relationships

Language and Verbal Communication

See Table 2.1 – Tips for Communicating

Nonverbal Communication

Written Communication

Interpreters and Translators

See Table 2.2 – Steps to Help with Interpretation

Long Distance Communications and Technology

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 Tips for Communicating
When When Speaking…
o Repeat messages as necessary. Make it clear at the beginning of the conversation
Listening… that you are happy to do so.
o Improve ability o Enunciate words clearly and speak at a slow pace. Do NOT speak loudly.
to interpret o Pause more frequently.

different o Use simple and clear vocabulary. Avoid using jargon, slang and colloquial
expressions such as ‘run that by’ and fillers, such as ‘well, ummm’.
pronunciations.
o Ask questions or do activities to ensure that they understand the message. Ask
clarifying, open-ended questions, such as ‘Where is the order at this time?’ or
‘How would you like to proceed?’
o Avoid long sentences.
o Balance facts and principles with stories.
o Use visuals.
o Provide summaries in writing, with visuals if appropriate.

ADAPTED TABLE 2.1

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 Steps to Help with Interpretation
When to use
interpretation step/s Interpretation steps
o Provide presentation text and speaker notes
Well in advance of the
o Provide a vocabulary list of all acronyms and technical terms, background
meeting or event
information on the other party and participating personnel
o Spend time together so the interpreter can become familiar with the accent and
verbal mannerisms of the presenters
Just before the meeting o Describe the general approach to conversation
or event o Discuss appropriate communication styles and etiquette
o Discuss the main messages
o Review technical issues and vocabulary
o Start by asking the interpreter to apologize for your inability to speak the local
language
o Pause frequently to give the interpreter time to catch up
At the meeting or event
o Select words carefully to avoid ambiguities
o Address the audience, not the interpreter
o Acknowledge the interpreter, if appropriate
After the meeting or o Ask the interpreter if the audience seemed to understand all the key
event elements of the message
ADAPTED TABLE 2.2

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 Communication and Intercultural Relationships, Continued
Negotiations
See Table 2.3 – Typical Phases of Negotiation
See Figure 2.2 – Impact of Culture on Negotiation
See Table 2.4 – Strategies Around Information Exchange and Initial Offer

Exchange
Preparation Relationship
Information and
Building
First Offer

Evaluate Approach
Persuasion Concessions Agreement and Identify Lessons
Learned

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 Typical Phases
in Negotiations

TABLE 2.3

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 Impact of Culture on Negotiation

FIGURE 2.2
Source: Salacuse, J et al, ‘Negotiating: The Top Ten Ways That Culture Can Affect Your Negotiation’

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 Strategies
Around
Information
Exchange and
Initial Offer

TABLE 2.4
Source: Adapted from Cullen, J et al, ‘Multinational Management: A Strategic Approach’

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